Thinking about launching an HR consultancy in Dubai? With its booming economy, investor-friendly laws, and strategic location, Dubai is an ideal destination to set up a human resources or recruitment consultancy. Whether you’re offering headhunting, manpower supply, HR outsourcing, or compliance services, the opportunities in this sector are immense, especially as the city prepares for the next wave of post-Expo economic growth.
In this comprehensive 2025 guide, we’ll walk you through everything you need to know about starting an HR consultancy in Dubai, from choosing the right jurisdiction to getting your license, along with links to related resources and a clear path to connect with business experts at Raes Associates.
Why Dubai is the Ideal Place for HR Consultancy
Dubai is a commercial hub attracting investors, entrepreneurs, and professionals from around the world. With thousands of new businesses opening every year, the need for professional HR and recruitment services is constantly rising. Here’s why setting up an HR consultancy in Dubai is a smart move:
- Strategic Location: Connects Asia, Europe, and Africa
- Business-friendly environment: Low taxation and 100% foreign ownership (in Free Zones)
- Diverse talent pool: Workforce from over 200 nationalities
- Booming sectors: Real estate, construction, healthcare, tech, and hospitality, all requiring HR support
Free Zone vs Mainland: Where Should You Register?
Choosing between Mainland and Free Zone jurisdictions depends on your business goals. Here’s a quick comparison:
Criteria | Mainland Dubai | Free Zone Dubai |
Client Access | Can work with local and international | Mostly international or within Free Zone |
Ownership | 100% foreign ownership (in most cases) | 100% foreign ownership |
Government Approvals | Requires approval from DED & MOHRE | Generally streamlined |
Office Requirement | Physical office mandatory | Flexi-desk options available |
Cost | Higher (more compliance) | Lower setup cost |
Still unsure whether to choose a free zone or mainland for your HR consultancy? Read our guide on Free Zone vs Mainland Business Setup in UAE – Which is Better?
Still confused? Talk to Raes Associates for jurisdiction advice
Types of HR Services You Can Offer
Once you’ve decided where to set up, choose your niche or combine services, such as:
- Talent acquisition and recruitment
- HR audits and compliance consulting
- Payroll management and outsourcing
- Training and development
- Employee onboarding and exit processes
- Performance management systems
- Executive search (head-hunting)
Each of these can be registered as individual business activities depending on your setup.
Step-by-Step Process to Start an HR Consultancy in Dubai
- Define Your Business Activity
Select the correct HR consultancy activities such as “Human Resource Consultancy,” “Recruitment Agency,” or “Manpower Supply.” Each requires specific approvals, especially if you’re planning to source talent for other companies.
- Choose a Legal Structure
You can set up as:
- Sole Proprietorship (ideal for individual consultants)
- Civil Company (suitable for professionals)
- Limited Liability Company (LLC) – Most popular and scalable
- Reserve Your Trade Name
Pick a unique, non-offensive trade name that reflects your services. Submit it to the Department of Economic Development (DED) or relevant Free Zone authority for approval.
- Get Initial Approval
Submit documents like passport copies, proposed business activities, and application form. You’ll receive initial clearance to proceed.
- Lease Office Space
In Mainland, physical office space is mandatory (minimum 200 sq. ft). In Free Zones, Flexi-desks or virtual offices are acceptable.
- Draft the MOA and LSA (if needed)
Mainland businesses require a Memorandum of Association (MOA) and, in some cases, a Local Service Agent (LSA). These documents define the business scope and local partnerships (if applicable).
- Apply for the License
Submit your full application, tenancy contract (Ejari), and pay the relevant license fees to obtain your Professional License for HR consultancy.
Learn the step-by-step process to secure the right trade license for your HR consultancy in Dubai How to Get a Trade License in Dubai – 2024 Guide
Want quick license processing? Raes Associates can help
Documents Required
- Passport copies of shareholders/partners
- Visa and Emirates ID (if UAE resident)
- Trade name reservation certificate
- Initial approval from DED or Free Zone
- MOA and tenancy contract (Ejari)
- No Objection Certificate (if employed)
- CV and educational qualifications (for professional license)
Cost of Setting Up an HR Consultancy in Dubai
Component | Estimated Cost (AED) |
Trade Name Reservation | 600 – 1,000 |
Initial Approval | 1,000 – 1,500 |
License Fee (Mainland/Free Zone) | 12,000 – 20,000 |
Office Rent (Ejari) | 15,000 – 30,000+ |
MOA Drafting/Legal Fees | 1,500 – 3,000 |
Total (Approx.) | 30,000 – 60,000 |
Cost varies by location, business activity, and office space. Free Zones are often more cost-effective.
Benefits of Starting Your HR Firm in Dubai
- 100% Ownership: Especially in Free Zones
- Visa Eligibility: Get investor visa and staff visas
- Scalable Model: Easily add new activities or branches
- Reputation Boost: Dubai-based firms gain trust globally
- Networking: Access to expos, conferences, and job fairs
Who Needs External Approval?
If you’re planning to open a recruitment agency (especially Mainland), you may need additional approvals from:
- Ministry of Human Resources & Emiratisation (MOHRE)
- Dubai Municipality (for specific office approvals)
- Dubai Chamber of Commerce
Raes Associates can assist in obtaining these approvals smoothly.
Future Scope of HR in UAE – 2025 & Beyond
The UAE’s commitment to Emiratisation, AI-based hiring, and hybrid work models means HR consultancies are now expected to:
- Provide digital solutions for recruitment
- Assist in local hiring mandates
- Offer training and upskilling programs
This makes HR consultancy a future-proof business with consistent demand.
Need Expert Guidance? Talk to Raes Associates
Starting an HR consultancy in Dubai is a lucrative opportunity in 2025, driven by a high demand for HR services and a supportive regulatory environment. By choosing the right jurisdiction, securing proper licensing, and working with an experienced business consultant, you can build a thriving HR firm in the heart of the UAE.
Setting up a business in the UAE involves understanding the legal, financial, and regulatory framework. At Raes Associates, we simplify the entire process.
Start your journey with a free 15-minute consultation with our business setup advisors.
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Frequently Asked Questions (FAQs)
- Do I need a local sponsor to open an HR consultancy in Dubai?
Only if you’re setting up in the Mainland under certain structures. In most cases, you can own 100% of the company.
- Can I offer recruitment and payroll under one license?
Yes, but you must select all relevant business activities when applying for your license.
- How long does it take to set up the business?
Typically 5 to 10 working days, depending on the authority and documents.
